Liquidation of Financially Distressed S Corporations: Mastering Tax Implications of Liquidating Distributions
Case Studies on Planning, Calculations, and Property Dispositions
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will delve into case studies on the planning, tax calculations, property dispositions, and dissolution filings required to liquidate an S corporation, particularly those in financial distress. The panel will provide a briefing on the general rules stated in IRC Section 1371 tying liquidation rules back to those applying to C corps, detailing the gain or loss on distributions in exchange for stock, and outline scenarios illustrating the rules in action.
- Liquidating a distressed corporation
- Preserving S corporation status until the end
- Cancellation of debt of S corporation
- Timing of cancellation of debt
- Impact of shareholder guarantee of debt
- Release from guarantee vs. cancellation of debt
- Payment of obligation by shareholder
- Settlement of debt to the shareholder: ordinary vs. capital loss
- Liquidating distributions
- Loss limitations of corporation
- Loss limitations of shareholder
- Timing of distribution
The panel will discuss these and other key issues:
- What are the rules for recognizing income and losses in the year of liquidation of the S corporation?
- How does the S corporation report liquidating distributions of installment receivables and other property?
- How do the S corporation and its shareholders report distributions of encumbered property, including situations where the debt exceeds the value of the asset distributed?
- What are the ramifications to shareholders after liquidation regarding basis, payment of claims against the corporation, and transferee liability?
Professor Robert W. Jamison, CPA
Professor Emeritus of Accounting
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His... | Read More
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is a regular contributor to Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook and has contributed to Federal Tax Workshop. He presents advanced and update S Corporation seminars for various states' CPA societies and to other professional organizations. He is a member of the AICPA S Corporation Technical Resource Panel. He consults on S corporation and other business entity problems and has secured letter rulings from the IRS.Close
Ms. Wilson concentrates her practice on federal tax planning and structuring and represents clients in a wide variety... | Read More
Ms. Wilson concentrates her practice on federal tax planning and structuring and represents clients in a wide variety of complex federal tax matters, with a particular emphasis on pass-through entities such as partnerships, S corporations and real estate investment trusts. Specifically, she focuses on advising clients on the formation, operation, acquisition and restructuring of pass-through entities.Close